2625 Risk Management Consultant

Background

Purpose

To provide support to the Development Agency of Serbia (DAS) and the Foreign Direct Investments (FDI) Unit in developing risk assessment methodology for the implementation and monitoring of investment projects.

Objective

To support the DAS and FDI Unit in monitoring, mitigation and diversification of investment projects portfolio in Serbia.

Background

Improving investment climate plays a central role in growth and poverty reduction. To improve the institutional infrastructure for supporting the development of business environment in Serbia, the Development Agency of Serbia (DAS) was established in 2015. In the previous period through “Improving the Investment Climate in Serbia” project, DAS was capacitated in terms of some structures, capacity building and procedures to effectively attract new investments and manage the existing projects. The structures developed through previous project was well placed and had good coordination role, helping both the DAS and investors to make promising progress in attracting more direct investments. However, there is a need for further strengthening the DAS capacities and coordination role of the FDI Unit.

The Development Services Agreement between Government of Serbia and UNDP is envisaged to provide a framework for services requested by the Government, for ongoing initiatives of the Government, for which it bears full accountability. Most development services envisaged under the Agreement relate to support to policy making through research, advocacy or policy alternatives, aimed at fulfilling priorities as articulated in the Government plans, presented before Parliament, and in line with progress in achieving the Sustainable Development Goals.

The overall objective of the continuation of FDI Unit is to support effective coordination of all institutions in the Republic of Serbia, relevant for improvement of the investment climate, which in turn directly affects the country’s sustainable growth and development. This particularly will be needed in the next post-pandemic period and as an answer to economic impact of Covid-19. In that sense, UNDP will engage assistance for supporting policy work enabling investment projects, facilitating and attracting individual FDIs and for continuation of the capacity building of the Development Agency of Serbia.

Duties and Responsibilities

Scope of work

Development Agency of Serbia (DAS) has a significant foreign direct investment (FDI) portfolio that includes both labour-intensive and capital-intensive projects. While FDI can bring many benefits to the host country, it also involves a range of risks that need to be carefully managed.

The types of risks that DAS faces in its FDI portfolio may include, but are not limited to, political risks, regulatory risks, legal risks, operational risks, financial risks, and reputational risks. Negative results from these risks may include reduced returns on investment, financial losses, delays or interruptions in project implementation, legal disputes, damage to reputation, and harm to the environment or local communities. To offset negative results, it is important for DAS to have effective monitoring, reporting and risk management practices in place, including risk assessment, risk monitoring, and risk mitigation strategies.

UNDP and DAS are searching for a consultant who will work with DAS to identify potential risks and develop risk mitigation strategies that can help to reduce or eliminate negative outcomes. Risk mitigation strategies may include diversifying the portfolio, developing contingency plans, negotiating risk-sharing arrangements with partners, and improving stakeholder engagement and communication.

Specific responsibilities include:

1. Identify potential risks: The consultant will review the portfolio of foreign direct investment projects in the Development Agency of Serbia and identify the potential risks associated with these projects. This will involve reviewing project documentation, financial statements, legal contracts, and any other relevant information.
2. Develop a risk matrix: Based on the identified risks, the consultant will develop a risk matrix that will enable the Agency to assess the likelihood and impact of each risk. The matrix will be designed to provide a clear and concise overview of the key risks associated with each project and each industry.
3. Analyse risk factors: The consultant will analyse the risk factors associated with each stage of the project implementation and industry and identify the key drivers of risk. This analysis will include an assessment of political, economic, financial, legal, and environmental risks with the emphasis on the impact of the recent monetary policies and changes to long term financing conditions on the forecasted business plans.
4. Recommend risk mitigation strategies: Based on the analysis of risk factors, the consultant will recommend risk mitigation strategies that the Agency can use to manage and minimize the risks associated with each project. These strategies may include, but are not limited to, risk transfer, risk reduction, and risk avoidance.
5. Present findings: The consultant will present the findings of the risk analysis to the Development Agency of Serbia in a comprehensive report. The report will include an executive summary, a detailed analysis of the identified risks, a risk matrix, and recommendations for risk mitigation strategies.
6. Collaborate with stakeholders: The consultant will collaborate with stakeholders in the Development Agency of Serbia to ensure that the risk analysis is comprehensive and accurate. This will involve regular communication with project managers, legal advisors, financial analysts, and other relevant personnel.
7. Provide training: The consultant will provide training to staff in the Development Agency of Serbia on risk management and mitigation strategies. The training will cover the key concepts of risk management, the risk matrix, and the recommended risk mitigation strategies.

The consultant shall cooperate closely with FDI unit and Development Agency of Serbia.

Duties, responsibilities and key milestones

The consultant is responsible for the following deliverables:

* The timelines may be slightly adjusted once the contract is signed with the consultant in order to align with actual project implementation.

All deliverables shall be written in Serbian language, quality reviewed and accepted by the UNDP Technical Advisor for Investment Climate.

Competencies

• Ability to summarize and systematize complex information and present findings clearly;
• Consistently ensures timeliness and quality of project work;
• Demonstrates strong oral and written communication skills;
• Displays cultural, gender, religion, race, nationality and age sensitivity and adaptability;
• Demonstrates integrity by modelling ethical standards;
•  Full computer literacy in the use of MS Office package, especially Word;
• Excellent written communication skills, with analytic capacity and ability to synthesize relevant collected data and findings for the preparation of quality analysis.

Required Skills and Experience

Education:

• Minimum B.A. in Economics, Business Administration, Finance or other similar field.

Experience:

• At least 7 years of experience in risk management in the context of investment portfolios.
• Expert knowledge of risk management frameworks and methodologies.
• Experience working with development agencies or similar organizations.
• Strong analytical and problem-solving skills.
• Excellent communication and report writing skills.

Languages:

• Fluency in Serbian and English.

Application Procedure:

Qualified and interested candidates are asked to submit their applications via UNDP Web site: UNDP in Serbia under section “Jobs” no later than 15 June 2023.

Application should include: 

• CV in English language containing date of birth, contact information (home address, phone number, e-mail) and timeline of work experience (including description of duties).  
• Offeror’s Letter (only PDF format will be accepted) confirming Interest and availability for the Individual Contractor (IC) Assignment. Can be downloaded from the following link:  https://www.undp.org/sites/g/files/zskgke326/files/2022-07/confirmation.docx. The Offeror’s Letter shall include financial proposal specifying a total lump sum amount for the tasks specified in this announcement with a breakdown of costs (Offeror’s Letter, including Annex 2, Table A: Breakdown of costs & Table B) Breakdown of costs by deliverables).

In order to apply please merge above listed documents into a single PDF file. The system does not allow for more than one attachment to be uploaded.

The shortlisted candidates may be asked to provide copies of diplomas and any other certificates providing evidence of their education and experience in relevant fields.

Any request for clarification must be sent by standard electronic communication to the e-mail vacancy.rs@undp.org. The procuring UNDP entity will respond by standard electronic mail and will send response, including an explanation of the query without identifying the source of inquiry, to all consultants.

Financial Proposal

Travel 

This is home-based engagement therefore no travel envisaged under this Terms of Reference.

Evaluation

Additional Information:

• Individual Contract (IC) will be applicable for individual consultants applying in their own capacity.  If the applicant is employed by any legal entity, IC would be issued upon submission of Consent letter from the employer acknowledging the engagement with UNDP. Template of General Conditions on IC could be found on: Template of General Conditions on IC could be found on: https://www.undp.org/sites/g/files/zskgke326/files/2022-07/General_Conditions_for_Individual_Contracts.pdf 
• Reimbursable Loan Agreement (RLA) will be applicable for applicants employed by any legal entity. Template of RLA with General Terms and Conditions could be found on: https://www.undp.org/sites/g/files/zskgke326/files/2022-07/PSU_Individual%20Contract_Model%20Reimbursable%20Loan%20Agreement.docx

In the case of engagement of Civil servants under IC contract modality a no-objection letter should be provided by the Government entity. The ‘no-objection’ letter must also state that the employer formally certifies that their employees are allowed to receive short-term consultancy assignment from another entity without being on “leave-without-pay” status (if applicable), and include any conditions and restrictions on granting such permission, if any. If the previous is not applicable ‘leave-without-pay’ confirmation should be submitted.

Engagement of Government Officials and Employees

• Government Officials or Employees are civil servants of UN Member States.  As such, if they will be engaged by UNDP under an IC which they will be signing in their individual capacity (i.e., engagement is not done through RLA signed by their government employer), the following conditions must be met prior to the award of contract:

          (i)       A “No-objection” letter in respect of the individual is received from the Government employing him/her, and;

          (ii)     The individual must provide an official documentation from his/her employer formally certifying his or her status as being on “official   leave without pay” for the duration of the IC.

• The above requirements are also applicable to Government-owned and controlled enterprises and well as other semi/partially or fully owned Government entities, whether or not the Government ownership is of majority or minority status.   
• UNDP recognizes the possibility that there are situations when the Government entity employing the individual that UNDP wishes to engage is one that allows its employees to receive external short-term consultancy assignments (including but not limited to research institutions, state-owned colleges/universities, etc.), whereby a status of “on-leave-without-pay” is not required.  Under such circumstance, the individual entering into an IC with UNDP must still provide a “No-objection” letter from the Government employing him/her.  The “no objection” letter required under (i) above must also state that the employer formally certifies that their employees are allowed to receive short-term consultancy assignment from another entity without being on “leave-without-pay” status and include any conditions and restrictions on granting such permission, if any.  The said document may be obtained by, and put on record of, UNDP, in lieu of the document (ii) listed above.